Our Approach To Sustainability
We focus on three areas to drive sustainability in the Philippines and throughout our business. Our triple bottom line: people, planet, and profit.
For people, we provide employment and career growth to our team members. We also enter into partnerships with communities to implement projects that will help them be more sustainable. Lastly, we aim to provide a sustainable customer experience.
For planet, we aim to minimize environmental impact when conducting our business. We achieve this by reducing carbon emissions, managing resources efficiently, managing waste, and using renewable energy.
For profit, we are always on the lookout for opportunities to expand our business and manage our operations through prudent use of resources.
Sustainability In Different Industries
From its humble beginnings as an abaca trading and general merchandise business in Leyte, to growing and diversifying into various companies in key industries, Aboitiz & Company (ACO) has built a respective business with a foundation built on trust, fairness, integrity, and quality.
Today, the Aboitiz Group [under listed firm Aboitiz Equity Ventures (AEV)] is recognized as one of the best-managed organizations in the country, made possible by our team members’ commitment to good corporate governance and corporate social responsibility. Guided by the Aboitiz core values of integrity, innovation, teamwork, and responsibility, we are moving forward to become a truly sustainable enterprise in the country. Our impact can be felt in the industries where we operate.
Power
Economies all around the globe have suffered from the COVID-19 health crisis. This event has brought organizational challenges to numerous companies worldwide. Despite its impact on the business, AboitizPower continues to ensure that its host communities come first.
To help mitigate the impact of COVID-19, AboitizPower’s generation facilities made remittances to local government units (LGUs) in response to the Department of Energy’s (DOE) ER1-94 program that entitles host communities to Php1.01 for every kilowatt-hour sold. AboitizPower and DOE have remitted Php671 million to 130 host communities across the country, helping manage the COVID-19 response in these areas.
AboitizPower also maintained its commitment to sustainability in the Philippines by being recognized as a constituent company in the FTSE4Good Index Series for three years, and ranking 47th in the Corporate Sustainability Assessment.
Banking and Financial Services
When it comes to banking and financial services, the Aboitiz brand of sustainability in the Philippines resulted from UnionBank’s transition from the “brick-and-mortar” model to the “tech-firm-with-banking capabilities” model.
The bank redefined sustainability by setting a more sustainable finance framework to facilitate the issuance of green, social, and even tech bonds. It ensures that financial capital is put into customers and organizations that aim to improve the quality of life and the planet we live on.
UnionBank’s sustainable financing program allows its team to co-design solutions and technology with its clients and partners. The program also contributes to the Aboitiz sustainability targets — such as socioeconomic advancement and empowerment, employment generation, access to essential services, renewable energy, energy efficiency, and pollution prevention technology.
Food
The Aboitiz Food Group’s robust and values-driven team made sure that the company would be on track with its goals and objectives even during the challenging year of 2020. In line with its commitment to sustainability in the Philippines, the company was able to ensure an uninterrupted supply of food products to Filipinos and other ASEAN markets.
By remaining steadfast to its values, the company also provided solutions for the growing needs of its customers while working to help ensure food security and end hunger in the country. The Food Group leveraged its existing production and distribution networks, and expanded into additional food products, diversifying into aquaculture and pet food.
The Group also focused on strengthening customer relationships through digitalization, continuing consultations, and customer visits with partners online. It shifted to e-commerce to bring its dog food brand and farm products directly to homes.
Infrastructure
The Aboitiz Group supports the government in nation-building by advocating and investing in sustainable infrastructure projects to promote sustainability in the Philippines. This puts emphasis on our view that sustainability is crucial as the economy needs help rebuilding from the effects of COVID-19.
Due to the lockdown, construction activities for the Davao City Bulk Water Supply Project were temporarily suspended. When construction resumed, we ensured that workers’ health and well-being were prioritized amid the pandemic.
Other than that, Republic Cement has overcome the COVID-19 crisis by putting procedures in place to stop the spread of the disease in the workplace. Because of this, the company has completed and commissioned new mills and added 2 million tons to its capacity. Waste management challenges were also overcome by launching a resource recovery group.
Land
AboitizLand promotes sustainability in the Philippines by building townships anchored to industrial zones to boost economic growth and employment for people in the area.
In 2020, the pandemic’s impact prompted the company to quickly pivot to digitalization, introducing contactless homebuying service, taking sales and marketing operations online, and offering digital-based homebuying. Digitalization has helped AboitizLand sustain its sales. The company has proven that being agile and innovative is key to survival and sustaining success.
AboitizLand also shifted homebuyers’ preferences to move away from the central business districts to emerging growth centers in Cebu, Batangas, and Central Luzon.
Construction
Aboitiz Construction practices sustainability in the Philippines by building better futures and thriving communities.
One example of this commitment is supporting a plastic solutions hackathon — Plastic 3R Hacks Philippines. The 2021 event was held to find solutions to address the plastic waste problem. The company hopes to adopt some ideas from the event in an effort to contribute to sustainability.
Aboitiz Construction has also made a notable contribution to sustainable mining by completing CD Processing (CDP) Ltd.’s copper ore sorting and processing plant in Toledo City, Cebu. This facility will be used to manage mining wastes properly and efficiently.
Learn More About Sustainability In The Philippines With Aboitiz Sustainability!
Our approach to sustainability is threefold — people, planet, and profit. Through this strategy, we can make an impact in various industries. If you are interested in learning more about sustainability in the Philippines, you can explore our website or contact us here.
Frequently Asked Questions
The Philippines placed 158th out of 180 countries in the 2022 Environmental Performance Index in terms of progress toward improving environmental health, protecting ecosystem vitality, and mitigating climate change, showing that sustainability in the Philippines has a long way to go.
The Philippines is home to diverse ecosystems and natural resources, including forests, coastal areas, and marine biodiversity. These resources provide essential ecological services such as water filtration, carbon sequestration, and nutrient cycling. Protecting these resources is crucial for maintaining the country’s ecological balance and mitigating the impacts of climate change.
As a developing country, the rapid growth of its economy also brings challenges to its people, such as overpopulation and rising social inequalities on the backdrop of a lack of access to quality education, health services, and economic inclusion. These societal concerns necessitate sustainability in the Philippines that will promote inclusive and equitable economic growth that is balanced with considerations of the environment and society.
On top of this, the Philippines is currently ripe with infrastructure projects brought about by the government’s “Build Build Build” program. This puts pressure on the country to build sustainably to help drive economic growth and job creation. Adopting sustainable building practices means embracing digital transformation while considering ‘green’ approaches and technologies.
The need for sustainability in the Philippines is an aspiration shared with many other countries to improve the quality of life in their communities. The Philippines has significant resources to protect not just to propel its current economic growth but to preserve the capacity to thrive for the future of its country and its citizens.
The country currently faces several issues, which include pollution, deforestation, illegal mining, and logging, unethical farming practices (such as dynamite fishing), food and energy security, water scarcity, inequalities in resource distribution, and waste management concerns. These issues negatively impact sustainability in the Philippines and contribute to natural disasters such as landslides, coastal erosion, biodiversity loss, extinction, and climate change.
Beyond environmental issues, the country also faces societal concerns. There is a need for safer spaces, inclusive and equal opportunities for people from all walks of life, justice, good governance, and upgraded infrastructure that will boost all of these aforementioned concerns. People should feel empowered, have job and career options, and be happy in their homes as well as chosen industries.
The Aboitiz Group focuses on three key areas to drive sustainability in the Philippines: people, planet, and profit. Spurred by the United Nations’ Sustainable Development Goals as well as our Aboitiz values, we have found that these interconnected areas are especially important to focus on if we want a livable and sustainable future for everyone.
For people, we work primarily to uplift people and give them the opportunities that should be afforded to all. For the planet, the Earth needs its citizens to be stewards who protect it and strive for its well-being. And finally, for profit, no initiative would be able to take off if not for the capital and resources put into it.
There are many ways that sustainability in the Philippines can be addressed by businesses. Common action points include adopting sustainable business practices (such as minimizing waste and practicing ethical material sourcing), developing new sustainability strategies and initiatives that align with their core values and objectives, and engaging in advocacy and policy development. These are steps toward a bigger goal, and they are also the building blocks toward a more sustainable future for the businesses and all their stakeholders.
Additionally, by identifying areas of improvement and implementing new practices to support sustainable development, businesses in the Philippines can lend a helping hand in promoting a greener, safer, and more productive society.
One of the most effective ways to do so is by engaging in meaningful dialogue with stakeholders and collaborating in implementing eco-friendly practices and emphasizing the importance of empowering people. Stakeholder engagement also gives us a great opportunity to learn which issues impact our community the most—and what we can do to help.
Partnering with like-minded businesses, non-profit organizations, and government agencies is another way to promote sustainability in the Philippines. This can involve banding together on projects, supporting advocacy efforts, and sharing best practices. Most of all, it involves spreading the word about sustainability and inviting more people to the conversation.
Another way businesses can promote sustainability is through Corporate Social Responsibility initiatives. By doing so, we help support communities in need and provide better opportunities in education, employment, and access to resources.
The future of sustainability in the Philippines looks bright, as more and more organizations are becoming aware of the benefits of going green and being prosocial, and taking action to promote these initiatives. Here are the trends we expect to see in the coming years:
- Adoption of circular economy practices.
- Greater focus on renewable energy.
- Increased emphasis on ESG and sustainability reporting.
- Embracing technology for sustainability.
- Integration of sustainability into business strategy.
- Focus on social sustainability.
The Aboitiz Group’s impact and push towards enterprise-wide sustainability in the Philippines can be felt in various industries. This includes (but is not limited to) power, banking and financial services, infrastructure, real estate, food, construction, and new-age technology like data science and artificial intelligence.
We also create life-essential value through our products and services. We partner with various local governments, non-profit organizations, and businesses to uplift Filipinos by protecting their natural home, securing their community’s well-being, and promoting more opportunities for them to thrive in the 21st century and beyond.